G/SG/N/7/MAR/6  
G/SG/N/11/MAR/9  
14 September 2021  
(21-6827) Page: 1/5 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT  
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL  
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6  
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2,  
OF THE AGREEMENT ON SAFEGUARDS  
MOROCCO  
Lighting column s 
The following communication, dated and received on 13 September  2021, is being circulated at the 
request of the delegation of Morocco . 
 
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In accordance with Article 12.4 of the Agreement on Safeguards , Morocco hereby submits its 
notification before taking a provisional safeguard measure  on import s of lighting columns . Morocco 
also notifies, pursuant to Article 9, footnote 2, of the Agreement on Safeguards, the list of developing 
countries excluded from the provisional measure.  
1. Product subject to the proposed provisional safeguard measure  
The products subject to the safeguard measure are lighting columns, which are metal supports , 3 to 
12 met res high , designed to hold one or more luminaires, consisting of a pole (or shaft) and po ssibly 
an extension piece or one or more brackets, under  tariff heading 7308.90.10.00.  
2. Proposed provisional safeguard measure  
It is proposed to apply a provisional safeguard measure to imports of lighting columns, which will 
take the form of an additional ad valorem duty of 25%.  
3. Entry into force of the proposed provisional safeguard measure  
The provisional safeguard measure is scheduled  to enter into force on the day immediately following 
the date of publication, in Morocco's Official Journal, of the joint order imposing the measure (the 
measure is not yet in force).  
4. Expected duration of the provisional safeguard measure  
The provisional safeguard measure will be applied for 200 days . G/SG/N/7/MAR/6 • G/SG/N/11/MAR/9  
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  5. The basis for:  
5.1 Making a preliminary determination, as provided for in Article 6 of the 
Agreement on Safeguards, that increased imports are causing or threatening 
to cause serious injury:  
1. Increased imports  
According to the petition, imports of lighting columns increased massively by 82% in absolute terms 
during the 2015 -2020 review period, rising from 8,285 tonnes in 2015 to 15,104 tonnes in 2020.  At 
the same time, between 2015 and 2020, imports of these products increased by 26% relative to 
domestic production, rising from 87% to 110%.  
Moreover, a review  of recent data for 20 21 made available to the Ministry has shown an anomalous 
and worrying  upward trend in import volumes. According to  the data available to the Ministry , the 
volume import ed by the end of June 2021 was 6,165 tonnes.  In terms of projection s for the year , 
on the basis of  the data o n import commitments made by importing companies, imports could reach 
over 18,000 tonnes by the end of 2021, resulting in a 20% increase on 2020.  
Therefore , the Ministry is of the opinion  that import s of lighting columns  increase d massively and 
worryingly  between  January and the  end of June 2021 and that this trend could  further aggravate 
the injury already suffered  by the domestic lighting columns industry.  
 2015  2016  2017  2018  2019  2020  January -June 
2021  
Imports 
(tonne s) 8,285 9,037 7,779 3,945 8,982 15,104 6,165 
Trends  - +9.08% -13.92% -49.29% +127 .71% +68.16% - 
Source : Data from the domestic industry.  
2. Serious injury or threat thereof  
2.1 Market share taken by imports  
The market share taken by imports increased between  2015 and 2020, despite the falls seen  in 2017 
and 2018.  Their share  rebounded by 86% in 2019 and by 42% in 2020.  
Index , 2015=100  2015  2016  2017*  2018  2019  2020  
Imports ' share of the domestic market  100 104 87 62 115 164 
Source : Data from the domestic industry . 
2.2 Sales  
Domestic industry sales rose by 71% between 2015 and 2017. Since  2018, sales have followed  an 
unbroken  downward trend.  
Index , 2015=100  2015  2016  2017  2018  2019  2020  
Sales  100 130 171 167 150 102 
Source : Data from the domestic industry.  
2.3 Production  
Production ticked  upward between 2015 and 2020. However, a ccording  to the petitioners, this 
increase does not reflect performance in the domestic  market , as a significant share of production 
is for export.  
Excluding export ed production volumes, production volumes for the domestic  market followed  a 
trend similar to that of sales, with a rise between 2015 and 2017, followed by a drop between 2018 
and 2020.  G/SG/N/7/MAR/6 • G/SG/N/11/MAR/9  
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  Inde x, 2015=100  2015  2016  2017  2018  2019  2020  
Total p roduction  100 137 189 203 311 360 
Production for the domestic  market  100 130 171 167 150 102 
Source : Data from the domestic industry . 
2.4 Productivity  
Domestic industry productivity rose between 2015 and 2020 , essentially as a result of  higher  total 
production, which increased  at a sharper rate (260% between 2015 and 2020) than the number of 
employees  (60% between 2015 and 2020).  
Index , 2015=100  2015  2016  2017  2018  2019  2020  
Productivity  100 108 131 112 155 225 
Source : Data from the domestic industry.  
2.5 Production capacity utilization  
With the exception of  2018, the production capacity utilization rate rose between 2015 and 2020.  
Despite this improvement, the rate remain ed very low compared to industr y standards. The domestic 
industry ha s spare  production  capacity due to competition from mass imports that prevent it from 
making  optimal use of its facilities.  
 2015  2016  2017  2018  2019 2020  
Capacity utilization rate  [20-30]%  [30-40]% [40-50]% [38-45]% [45-50]% [50-58]% 
Source : Data from the domestic industry.  
2.6 Profits and losses  
The domestic industry 's weighted average profit followed a  positive trend  in the home  market 
between 2015 and 2018.  However, from  2019, the domestic industry had to reduce its profitability 
to keep up  with competition from imports and maintain its market share.  
Index , 2015=100  2015  2016  2017  2018  2019  2020  
Weighted average profit  100 108 153 285 204 -574 
Source : Data from the domestic industry.  
2.7 Employment  
Employment rose between 2015  and 2019, before  falling in 2020. According to the petitioners, the 
rise in employment was due to greater recourse to  temporary employ ment to support their 
rapidly -growing export activities.  
Index , 2015=100  2015  2016  2017  2018  2019  2020  
Number of employees  100 127 144 181 201 160 
Source : Data from the domestic industry . 
2.8 Inventories  
With the exception of  2017, the inventories of the product under consideration increased between 
2015 and 2020. According to the petitioners, these surplus inventories have incurred major logistics 
and financial costs for the domestic industry.  
Index , 2015=100  2015  2016  2017  2018  2019  2020  
Inventories  100 364 193 247 306 568 
Source : Data from the domestic industry.  G/SG/N/7/MAR/6 • G/SG/N/11/MAR/9  
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  3. Causation  
Based on the petition data, the examination of the correlation between the massive increase in 
imports and the injury suffered , and of other  factors that might  cause injury to the domestic industry 
producing lighting columns show s that, provisionally and at this stage, the cont ribution of these 
factors to the injury suffered  is not clearly established.  
5.2 Determining the existence of critical circumstances where delay would cause 
serious injury which it would be difficult to repair  
A preliminary determination has been made that  critical circumstances exist in which delay would 
cause injury that would be difficult to repair.  
In addition to the impairment of the domestic industry's position over the given  period (2015 -2020), 
the examination of recent  data for 2021  made available to the Ministry has shown that the volume 
of imports continues  to follow  a worrying upward trend.  According to  these data, the volume 
import ed by the end of June 2021 was 6,165 tonnes . In terms of projection s for the year , on the 
basis of the data on import commitments made by importing companies, imports could reach over 
18,000 tonnes by the end of 2021, resulting in a 20% increase on 2020. 
Therefore , the Ministry is of the opinion  that the trend in imports for  2021 could  aggravate  the injury 
suffered by the domestic industry.  Given  the recent rate of increase in imports and the situation of 
the domestic industry suffering serious  injury, it is considered that any delay would cause serious 
injury that would be difficult to repair du ring the investigation, in the absence of a provisional 
safeguard measure.  
6. Offer of consultations under Article 12.4  
In accordance with Article 12.4 of the Agreement on Safeguards, Morocco is prepared to consult on 
the provisional safeguard measure with those Members having a substantial interest as exporters of 
the products concerned.  
7. Developing countries exempt from the Definitive Safeguard Measure under Article 9.1 
of the Agreement on Safeguards  
Afghanistan ; Albania; Angola; Antigua and Barbuda; Argentina; Armenia; Bahrain, Kingdom of; 
Bangladesh; Barbados; Belize; Benin; Bolivia; Botswana; Brazil; Brunei Darussalam; Burkina Faso; 
Burundi; Cabo Verde; Cambodia; Cameroon; Central African Republic; Chad; Chile;  China; 
Colombia; Congo; Costa Rica; Côte d'Ivoire; Cuba; Democratic Republic of the Congo; Djibouti; 
Dominica; Dominican Republic; Ecuador; El Salvador; Eswatini; Fiji; former Yugoslav Republic of 
Macedonia (FYROM); Gabon; Gambia; Georgia; Ghana; Grenada;  Guatemala; Guinea; Guinea 
Bissau; Guyana; Haiti; Honduras; India; Indonesia; Jamaica; Jordan; Kazakhstan ; Kenya; Kuwait; 
Kyrgyz Republic; Lao People's Democratic Republic; Lesotho; Liberia ; Madagascar; Malawi; 
Malaysia; Maldives; Mali; Mauritania; Mauriti us; Mexico; Moldova, Republic of; Mongolia; 
Montenegro; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; Niger; Nigeria; Oman; Pakistan; 
Panama; Papua New Guinea; Paraguay; Peru; Philippines; Qatar; Rwanda; Saint Kitts and Nevis; 
Saint Lucia; Saint Vincent and the Grenadines; Samoa; Saudi Arabia, Kingdom of; Senegal; 
Seychelles;  Sierra Leone; Solomon Islands; South Africa; Sri Lanka; Suriname; Tajikistan; Tanzania; 
Thailand; Togo; Tonga; Trinidad and Tobago; Tunisia; Uganda; Uruguay; Vanuatu; Venezuela, 
Bolivarian Republic of; Viet Nam; Yemen; Zambia; Zimbabwe.  G/SG/N/7/MAR/6 • G/SG/N/11/MAR/9  
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  8. Contact point for correspondence concerning the investigation  
To request information about the investigation procedure, parties should contact the Ministry using 
the fax number or email address provide d below:  
Ministère de l 'Industrie, du Commerce, de l'Économie Verte et Numérique  
Direction Générale du Commerce  
Direction de la Défense et de la Réglementation Commerciales  
Parcelle 14, Business center, aile Nord bd Riad,  
Hay Riad . BP 610, Rabat Chellah, Maroc  
Tel: +212537 70  18 46 
Fax: +212537 72  71 50 
Email : ddc-svg-candelabre@mcinet.gov.ma  
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